Gas Industry in Rest of The World

Presented byHarpreet Singh

Nastagis Niyaz Ahmed
Pankaj Chauhan
Rajagopalan Iyer
Saikat Panja

Agenda
Evolution of Gas and Gas Industry
Worldwide Natural Gas Industry Overview
Scenario in Africa
Scenario in Australia
Scenario in South America
Scenario in China
International Natural Gas Management

Evolution of Gas and Gas Industry

Most of the natural gas that is brought out from under the ground is millions and millions
of years old.
Primary accidental burns of natural gas in a rock were found in ancient Greece, on
Mount Parnassus around 1000 B.C.
Britain was the first country to commercialize the use of natural gas.
Around 1785, natural gas produced from coal was used to light houses, as well as
streetlights.
In 1821, the first well(about 27 foot) specifically intended to obtain natural gas was dug
in Fredonia, New York by William Hart.

 Expanding on Harts work, the Fredonia Gas Light Company was eventually formed,
becoming being the first American natural gas company.
Without any way to transport it effectively, natural gas discovered pre-WWII was usually
just allowed to vent into the atmosphere, or burnt.
One of the first major pipelines was constructed in 1891. This pipeline was 120 miles long,
and carried natural gas from wells in central Indiana to the city of Chicago.
In 1938, the U.S. government first regulated the natural gas industry.
Today, the natural gas industry is regulated by the Federal Energy Regulatory Commission
(FERC).

Worldwide Natural Gas Overview

As of October 2014, natural gas production was 4.6 Billion cubic feet/day greater than
it was in October 2013.
Current leading producer of natural gas in the world is USA with 687.6 billion cubic
meters followed by Russia at 604.8 billion cubic meters.
Other leading producers include Iran(166.6), Qatar(158.5), Canada(154.8),
China(117.1) and Norway(108.7).
3369.9 billion cubic meters is the total world production of the Natural Gas.

Scenario in Africa
Sub-Saharan Africa exports 1.22 trillion cubic feet of
natural gas via pipeline and liquefied natural gas (LNG).
Nigeria, Equatorial Guinea, and Mozambique are the
major natural gas exporters in the region.
Mozambique sends all exports to South Africa via
pipeline.
Equatorial Guinea exports LNG mainly to Asia, followed
by Latin America and Europe.
In Nigeria the vast majority of natural gas exports are
LNG, with small amounts exported via the West African
Gas Pipeline.

Top 5 LNG Exporters in the World

Nigeria is the 4th largest LNG exporter in the world, accounting for 8% of total LNG exports worldwide.

Proved reserves at the end of 2013 was 179.4 Trillion cubic feet.

Production at the end of 2013 was 36.1 Billion cubic metres.

The Oil & Gas Journal released on January 1, 2014, raised Mozambiques proved natural gas reserves to
100 trillion cubic feet (Tcf), up from 4.5 Tcf the previous year, placing the country as the third-largest
proved natural gas reserve holder in Africa, after Nigeria and Algeria.

Mozambique currently produces a small volume of natural gas. In 2012, Mozambique produced 154
billion cubic feet (Bcf) of natural gas mainly from two onshore gas fields, Pande and Temane.

The majority of natural gas produced in Mozambique was exported (127 Bcf) to South Africa via the 535mile Sasol Petroleum International Gas Pipeline, and the remainder was domestically consumed (27 Bcf).

Scenario in Australia
Australia has large natural gas reserves in the Asia-Pacific region with production continuing to
increase.
Western Australia has the largest producing basin in the country. Other producing states are
Victoria, Northern Territory (serving local usage only) and Central Australia.
Due to Australias location in relation to other countries, conventional gas pipelines cannot be
used in the transportation of gas and therefore gas is mostly transported as liquid natural gas.
Liquid Natural Gas (LNG) is the fastest growing energy sector and the outlook is for continued
growth.
Australia is the worlds fifth largest LNG exporter. Japan is the primary importer followed by
China, Taiwan, South Korea and India.
Australia currently has two LNG productions; one is the North West Shelf Venture (NWSV) and
the other is the Darwin-LNG. New projects are being constructed in Queensland and in Western
Australia.

 Proved reserves at the end of 2013 was 129.9 Trillion cubic feet.
Production at the end of 2013 was 42.9 Billion cubic metres.

Domestic Gas Policy in Australia

Challenges for Australian Gas Industry

Scenario in South America

According to OGJ, Venezuela had 196 trillion cubic feet (Tcf) of proved natural gas reserves at
the beginning of 2014, the second largest in the American continent behind the United States.
In 2012, Venezuela produced 803 billion cubic feet (Bcf) of dry natural gas and consumed 869
Bcf.
Since 2003, the petroleum industry has consumed about 40% of Venezuelas gross natural gas
production, primarily for gas reinjection to bolster crude oil extraction.
Because of the declining output of mature oil fields, natural gas use for enhanced oil recovery
has increased by 42% since 2005.
To meet the growing industrial demand for natural gas, Venezuela imports gas from Colombia
and the United States.

PNG and LNG in South America

About 90% of Venezuelas natural gas is found associated with oil but the country is looking to
locate and produce more natural gas from non associated fields.
Venezuela has improved its 2,750-mile domestic natural gas pipeline transport network to allow
greater domestic movement and use of natural gas with the roughly 190-mile Interconnection
Centro Occidente (ICO) system.
The ICO connects the eastern and western parts of the country, making natural gas more easily
available for domestic consumers and for reinjection into western oil fields.
In 2008, the Antonio Ricaurte pipeline came online, connecting Venezuela with Colombia.
Currently, the pipeline allows Colombia to export natural gas to Venezuela, with contracted
volumes ranging between 80 and 150 MMcf/d.
While Venezuela planned to eventually export 140 MMcf/d of natural gas to Colombia,
difficulties surrounding the development of its resources required Venezuela to continue to
import natural gas from Colombia.

Challenges and Prospects for South American Gas

Industry
Lack of markets and pipeline infrastructure is the main reason South America has scarcely
developed its abundant natural gas resources.
Argentina has both massive domestic gas reserves and a mature gas market, with a welldeveloped infrastructure.
Brazil and Chile have large populations whose annual gas demand is growing at double-digit
percentages; yet they depend primarily on imports.
Venezuela and Colombia are constrained in the development of associated gas reserves that are
dependent on oil production.
The use of compressed natural gas (CNG) as a transport fuel is expanding rapidly; Argentina is
a world leader in that field.
Bolivia, with its enormous gas reserves, is exploring the possibility of exporting LNG to the
west coast of Mexico, via Chile or Peru. Peruvian gas from the giant Camisea field also may
one day be exported as LNG, because the local market is small and exports to Brazil must
compete against Bolivia's abundant gas supplies.

Scenario in China
According to OGJ, China held 155 trillion cubic feet (Tcf) of proven natural gas reserves as of
January 2014, 14 Tcf higher than reserves estimated in 2013 and the largest in the Asia-Pacific
region.
China was traditionally a net gas exporter until 2007, when it became a net natural gas importer
for the first time. Since then, gas imports have increased dramatically in tandem with rapidly
developing pipeline and gas processing infrastructure.
Natural gas imports, which met 29% of demand in 2012, have become an increasingly
significant part of China's gas supply portfolio.
The natural gas sector is dominated by the three principal state-owned oil and gas companies:
CNPC(China National Petroleum Corporation), Sinopec, and CNOOC(China National Offshore
Oil Corporation).
CNPC is the country's largest natural gas company in both the upstream and downstream
sectors. CNPC data show that the company accounts for roughly 73% of China's total natural
gas production.

 China's oil companies are exploring more frontier plays such as deep water, shale gas, and gas
derived from coal seams.
China had nearly 32,000 miles of main natural gas pipelines at the end of 2012.
Over the past three years, China has ramped up imports of natural gas via pipelines as
production from Central Asia and Myanmar increased and as gas infrastructure in the region
improved.
China's first international natural gas pipeline connection, the Central Asian Gas Pipeline
(CAGP), transports natural gas through twin parallel pipelines from Turkmenistan, Uzbekistan,
and Kazakhstan to the border in western China. The CAGP's current capacity is 1.1 Tcf/y and
spans 1,130 miles.
Robust growth in natural gas demand in recent years, particularly in the urban coastal areas, has
led China to become the third largest LNG importer and to accelerate development of its LNG
and pipeline infrastructure.

Challenges and Prospects for Chinese Gas Industry

The government is planning to produce about 5.5 Tcf of natural gas by the end of 2015 in line
with its desire to use more natural gas to replace other hydrocarbons in the country's energy
portfolio.
The Chinese government anticipates boosting the share of natural gas as part of total energy
consumption to around 8% by the end of 2015 and 10% by 2020 to alleviate high pollution
resulting from the country's heavy coal use.
China is expected to continue importing natural gas in the form of LNG and from a number of
new and proposed import pipelines from neighboring countries.
China was traditionally a net gas exporter until 2007, when it became a net natural gas importer
for the first time. Since then, gas imports have increased dramatically in tandem with rapidly
developing pipeline and gas processing infrastructure.
It is also exploring more technically challenging areas such as deep water, coalbed methane, and
shale gas reserves with foreign companies.
To meet its rapidly growing demand, China is diversifying its LNG imports from other regions
such as the Middle East and Africa.

International Natural Gas Management

References
Oil and Gas Journal Article Paris , March 2013.
www.eia.gov
From promise to performance - Africa oil & gas review - Report on current developments
in the oil and gas industry in Africa.
Australias LNG Boom: Opportunities and Challenges by Paul Balfe.
Australias Natural Gas Opportunity: Fuelling A Manufacturing Renaissance.

Thank You one and all for your patience and co-operation!!!

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